Legal Question in Credit and Debt Law in Arizona

We had an employee that we helped with a down payment of roughly $13K to buy a home here in AZ. We have a promissory Note stating the repayment of this loan. He had a salary plus an additional $300.00 reimbursement for using his own truck on company time. He was to repay $520 every month to repay the loan. He never really ever started paying the loan. So we agreed to stop the reimbursement of the truck and start taking out only $220 from his check every month. We only did this roughly six months, its been almost two years. Recently he has been fired for stealing and writing fraudulent checks. He also no showed for 3 days and left work early 2 that week with no notice. We filed a police report for the bad checks and stealing money from the fuel card (withdrawing money from the ATM). We are now wanting to file something with the court to get our money back in regards to the property. What do we file? a lien? Sidenote he says that he has received a Foreclosure notice on what he says was 6/21.

Asked on 6/28/19, 8:56 am

1 Answer from Attorneys

Scott Hyder Law Office of Scott W. Hyder, PLC

You have to file a lawsuit against him in order to get a judgment. Once you get a judgment, you can record the judgment as a lien. You cannot record a lien against the property before you get a judgment unless the debtor consented and signed a deed of trust at the time he took out the note with you. Furthermore, if the property is being foreclosed, it is unlikely you are going to get paid on that judgment from the property foreclosure, as the foreclosure will probably occur well in advance of any judgment you receive from a court.

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Answered on 6/28/19, 9:40 am

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